India's Reliance Industries (RELI.NS), Softbank Group-backed (9984.T) Ola Electric, and automaker Mahindra & Mahindra (MAHM.NS) have delivered their tenders in accordance with the rules of India’s battery program (worth $2.4 billion).
In 2021, India motivated companies to capitalize in battery manufacturing, with a completion of an incentive plan. The goal is to set a local supply chain for green transportation as well as storing renewable energy.
In this respect, companies including Hyundai Global Motors, engineering conglomerate Larsen & Toubro (LART.NS), and battery makers Amara Raja (AMAR.NS) and Exide (EXID.NS) have, too, submitted their tenders, according to the Ministry of Heavy Industries. The investment plan is projected to expand local manufacturing along with growing direct investment of foreign countries in India, the ministry said.
India’s objective is to develop a huge battery storage capacity (a total of 50 gigawatt hours, Gwh) in five years, expectedly drawing direct investment worth $6 billion.
Companies are obliged to establish a minimum of 5 Gwh of storage capacity and conform to specific domestic content conditions to get qualified for the incentives. The ministry stated that ten companies have submitted tenders (overall nearly 130 Gwh). The country is also attracting great companies in the world, including Tesla Inc (TSLA.O), Samsung (005930.KS), LG Energy, Northvolt and Panasonic (6752.T), to invest in.
To reduce pollution in main cities and minimize dependence on oil, India plans to clean automotive technology.
By 2030, the country intends to sell e-cars, e-motorcycles and e-scooters representing 30% of private car sales and 40% of such sales, respectively. In that wise, India will increase demand for batteries, now accounting for 35%-40% of overall vehicle costs.